This report provides a microeconomic analysis of offshoring, international trade, and trade policies, with a focus on NAFTA. It examines the factors influencing offshoring decisions, such as infrastructure, labor costs, and business environment, comparing Asian countries to South America and Africa. The report evaluates the rationality of manufacturing offshore, considering factors like administrative laws, product specifications, transportation expenses, and tariffs. It also explores the concept of increasing returns to scale and economies of scale in both domestic and foreign markets, using diagrams to illustrate these concepts. Furthermore, the report analyzes the impact of NAFTA and the renegotiation efforts by the U.S. president, including policies related to automobile parts, labor standards, and value-added tax, discussing their potential outcomes on job creation and international competitiveness. Desklib offers a wide range of past papers and solved assignments to aid students in their studies.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
